SPC(SH:600688)2019-03-19 16:00Financial Performance - The net profit attributable to shareholders for 2018 was RMB 5,277,186 thousand according to Chinese accounting standards, and RMB 5,336,331 thousand according to International Financial Reporting Standards[4]. - The company's operating revenue for 2018 was RMB 107.76 billion, an increase of 17.12% compared to RMB 92.01 billion in 2017[13]. - The total profit for 2018 was RMB 6.75 billion, a decrease of 14.04% from RMB 7.85 billion in 2017[13]. - The net profit attributable to shareholders for 2018 was RMB 5.28 billion, down 14.07% from RMB 6.14 billion in 2017[13]. - The net cash flow from operating activities for 2018 was RMB 6.70 billion, a decrease of 5.42% compared to RMB 7.08 billion in 2017[13]. - The total assets at the end of 2018 were RMB 44.54 billion, an increase of 12.45% from RMB 39.61 billion at the end of 2017[13]. - The net assets attributable to shareholders at the end of 2018 were RMB 30.37 billion, up 7.48% from RMB 28.26 billion at the end of 2017[13]. - The basic earnings per share for 2018 were RMB 0.488, a decrease of 14.08% from RMB 0.568 in 2017[13]. - The weighted average return on equity for 2018 was 16.21%, a decrease of 4.63 percentage points from 20.84% in 2017[13]. - The asset-liability ratio at the end of 2018 was 31.55%, an increase of 3.61 percentage points from 27.94% at the end of 2017[13]. Dividends and Shareholder Information - The proposed dividend for 2018 is RMB 0.25 per share (including tax), pending approval at the annual general meeting[4]. - The cash dividend payout ratio for 2018 was 51.28% of the net profit attributable to shareholders of the parent company[118]. - The company plans to hold a shareholders' annual meeting to approve the profit distribution proposal[117]. - The total number of ordinary shareholders reached 90,979 by the end of the reporting period, up from 88,598 at the end of the previous month[160]. - The largest shareholder, Sinopec Limited, holds 5,460,000,000 shares, representing 50.44% of the total shares[161]. Operational Highlights - The total sales volume of major products was 13.416 million tons, representing a year-on-year increase of 6.42%[23]. - The company maintained a product sales rate of 100.21% and a receivables turnover rate of 100% in 2018[23]. - The company exported 2.12 million tons of refined oil in 2018, representing a year-on-year increase of 14.35%[28]. - The company processed 604 million tons of crude oil in 2018, a year-on-year increase of 6.8%, with total refined oil production reaching 360 million tons, up by 3.6%[101]. - The company achieved a production volume of 146.82 million tons for aviation kerosene, down 6.73% year-on-year, while the production of paraxylene increased by 6.34% to 67.30 million tons[103]. Environmental and Social Responsibility - The company achieved a 64.01% year-on-year reduction in sulfur dioxide emissions and a 39.96% reduction in nitrogen oxides emissions in 2018[144]. - The company maintained a 100% compliance rate for wastewater discharge and a 100% compliance rate for controlled waste gas emissions in 2018[144]. - The company actively fulfilled its corporate social responsibility, as detailed in its 2018 Environmental, Social, and Governance report[143]. - The company paid an environmental tax of RMB 16.85 million to the Jinshan District Tax Bureau in 2018[144]. - The company faced three environmental administrative penalties in 2018, totaling fines of RMB 600,000, primarily due to emissions exceeding standards[145]. Research and Development - The company completed 71 patent applications and received 32 patent grants in 2018, focusing on carbon fiber technology and other innovations[29]. - Research and development expenses for 2018 amounted to RMB 0.0373 billion, a slight increase from RMB 0.0367 billion in 2017, primarily due to increased investment in safety-related projects[62]. - The company is focusing on research and development of new technologies to drive future growth[173]. - Research and development expenditures increased by 25%, totaling 1 billion CNY, focusing on sustainable energy solutions[177]. Market and Strategic Outlook - The company plans to continue expanding its market presence and invest in new technologies to enhance operational efficiency[12]. - The company is expanding its market presence in Southeast Asia, targeting a 20% market share in the region by 2025[177]. - The company anticipates a capital expenditure of approximately RMB 1.5 billion for 2019, which will be financed through a combination of financing activities and internal funds[95]. - The company is actively pursuing new product development, including optical film polyester and medical polypropylene syringe upgrades, while also promoting market expansion for various polyester products[93]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 12% to RMB 672 billion[181]. Governance and Compliance - The financial statements were audited by PwC and Deloitte, both issuing standard unqualified audit reports[3]. - The company has adopted new accounting standards effective from January 1, 2018, which did not have a significant impact on the consolidated financial statements[121]. - The company has no significant acquisitions, sales, or investments in subsidiaries or joint ventures during the reporting period[83]. - The company has no major safety production accidents reported during the period[115]. - The company and its executives have not faced any investigations or penalties from the China Securities Regulatory Commission during the reporting period[123]. Stock Options and Executive Compensation - The stock option incentive plan allows for the issuance of stock options not exceeding 10% of the total share capital, which is 1,080 million shares, and 10% of the A-share capital, which is 730.5 million shares[128]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to RMB 7.719 million[188]. - The total number of A-share stock options held by executives at the beginning of the reporting period was 966,000, with 483,000 options exercised during the period[183]. - The company’s independent non-executive directors' remuneration is determined based on principles of effectiveness, incentive, and fairness[188]. - The company’s stock option plan allowed for 483,000 options to be exercised, indicating a significant level of executive participation in the incentive program[183].